Ladies and gentlemen, good day, and welcome to Ajanta Pharma Q1 FY23 Earnings Conference Call. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Yogesh Agrawal, Managing Director of Ajanta Pharma Limited. Thank you, and over to you, sir. Thank you. Good evening, and welcome to all of you. With me, I have Mr. Rajesh Agrawal, our Joint Managing Director, and Mr. Arvind Agrawal, our CFO. I'm sure all of you have received the bonus shares in their accounts. Coming to the results, they are already there with you, and I'm happy to share that the quarter witnessed a strong growth momentum across all our major markets of branded generic business. I'll take you through business wise performance for the Q1, along with the comparison of previous years for the same period. Let's begin with the emerging market branded generic business, which comprises of Asia and Africa. In Asia, during the Q1 2023, our sale was INR 240 crores against INR 165 crores, posting a very healthy growth of 45%. Just to caution, the growth appears a bit elevated, primarily because of the slightly lower base in the Q1 2022, which was impacted because of the second wave of the COVID, which created some disruptions that time. Coming to Africa, during the Q1, our sale was INR 168 crores against INR 125 crores, again, posting a very healthy growth of 32%. Here also similar caveat that the like-to-like in the earlier Q1 that was slightly suppressed because of the COVID disruptions, which makes this current Q1 look a bit more elevated. Overall, the branded generic business of Asia and Africa. It contributed to 43% of the total revenue during the Q1. Our exposure to these markets were INR 408 crores against INR 291 crores, posting a very healthy growth of 41%, sorry, over previous year for the same period. We continue to stay razor sharp in these markets to identify the gaps and the opportunities. We continue to execute very clinically so that we can post superior growth as compared to the markets. During the quarter, we launched 10 new products in Asia and Africa across various countries. Let's move to the U.S. generic business. U.S. business contributed 19% to the total revenue during the Q1. We registered the sales of INR 179 crore against 168, posting a modest growth of 6%. This modest 6% growth was despite the previous severe price erosion, which we have seen in the U.S. market, and also in absence of any new product launches. We continue to have 39 products on the shelf. During the quarter, we filed one ANDA and also received one tentative approval. At the end of June 2022, we had 20 ANDAs awaiting approval with the FDA. Our filings for the quarter has started on the little slower side, but we have number of products at advanced stage of filing. We will see the accelerated filing in coming quarters in Q2, Q3, Q4. With that, we are still aiming to file 10-12 ANDAs in the financial year 2023. Coming to African institution, this business contributed 8% in the total revenue during Q1. We registered the sales of INR 77 crores against INR 54 crores, posting a growth of 44% over previous year same period. As I have been mentioning earlier, the institution business remains unpredictable. It depends on the funds availability and the requirements of the procuring agencies. With this, now I hand over to Mr. Rajesh Agrawal, our Joint Managing Director. He will take you through India business. Thank you, and over to you, Rajesh. Thank you very much. Good evening to all of you. Let me discuss some of the key highlights of India business with you now. India business contributed 30% in the total revenue during Q1 FY 2023. Sales stood at INR 279 crores as against INR 229 crores, posting a healthy growth of 22% during the quarter. This includes sales from trade generic of INR 23 crores against INR 27 crores in previous year same period. We launched seven new products in Q1 FY 2023, with two products being first to market. Our performance has been satisfactory, and it has been on the back of new product launches, market share gain, and price increase. As per IQVIA MAT June 2022, we have posted healthy growth in all the therapeutic segments and exceeded industry growth rates across all therapies. We have three of our brands appearing in top 500 in the IPM now. Again, as per IQVIA, we improved one rank. To rank 28 in June 2022, from being 29th ranked in March 2022. We are glad to inform that we have also improved our ranking within therapeutic segments as well, by one rank in cardiology and dermatology and by two ranks in the pain management segment over the last year, last quarter. With this, I will now hand it over to Mr. Arvind Agrawal, CFO, to take you through the financial performance. Thank you, and over to you, Mr. Arvind. Thank you very much. Good evening to all of you, and warm welcome to this earnings call. For ease of discussion, we will look at the consolidated financials and provide year-on-year comparison. Let me take you through key financial highlights for the quarter. It was an excellent quarter with 27% growth in revenue spreading across all the markets. Total revenue stood at INR 951 crores against INR 748 crores. Against the guided material cost of 25%-26%, Q1 FY 2023 raw material cost stood at 29%. The reasons for the same are one-time inventory write-off of 2% due to expiry, increase in raw material and packing material cost due to global inflation impacting about 1%, U.S. price erosion is about 1%. From the above impact, we will be able to recover 1% from the price increase we have taken across markets and INR depreciation against USD. Going forward, we estimate the cost of goods sold to be close to 26%, in that range. Coming to other expenses, we saw significant rise in the export freight cost. Pre-COVID, our freight costs have been around 6% retail, which got escalated to 8%, translating to almost INR 14 crore adverse impact for the quarter. This external factor beyond our control have adversely impacted the profitability to that extent. R&D expenses was at INR 54 crore against INR 45 crore for the quarter. R&D expenses stood at 6% of revenue, which will continue to be at this level. EBITDA for the quarter stood at INR 222 crore against INR 220 crore last year. EBITDA was lower in the quarter at 23%, mainly due to the above factors mentioned by me earlier. Other income stood at INR 33 crore in Q1 FY 2023, mainly contributed by foreign gain of INR 28 crore. Income tax stood at 21% for Q1 FY 2023 and expected to remain at similar level during FY 2023. During the quarter, cash was at INR 175 crore against INR 134 crore, up 1% due to reasons mentioned earlier. Cash for the quarter was at 18%. We incurred Capex of INR 43 crore in first quarter of FY 2023. Capex, including maintenance Capex for this year, is estimated to be around INR 200 crore. With these highlights, I open the floor for the question and answer. Thank you very much. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Anyone who would like to ask a question, please press star and one at this time. Ladies and gentlemen, we will wait for a moment while the telephone queue assembles. The first question is from the line of Tushar Manudhane from Motilal Oswal. Please go ahead. Thanks for the opportunity. Sir, on the topic of branded generics, there has been a very robust growth for the past four quarters at least. If you could just elaborate, and this has been much higher than the industry growth rates. What is driving this, and how sustainable is this growth for the next 12-18 months? No doubt we have executed well in Africa. The combination of increasing our market share from the existing product, existing people, launching of new products and successfully taking the market share from there, also expanding our field size there. The combination of that, we've seen a healthy growth last year and the current quarter also. As I mentioned in my opening remarks, this quarter the growth looks a bit more elevated than otherwise would have been because of the low Q1 of the last year. Without that also we would have posted I think 25% growth higher than that. Going forward I think we can expect the growth to remain in the mid-teens is what we are looking to give the guidance. Number of MRs which we have increased in the region, and to what level they are now? Sorry, I did not hear you. Increase in what? Number of MRs on the field in Africa. Being a proprietary kind of information, we are not giving out the region level or field size. In general, we have seen the growth of about 8% odd in the field size compared to last year. Sir, if you could just repeat the raw material related one-time inventory write-off of signage. If you could just repeat that statement, please. Sure, yeah. Tushar, one-time inventory write-off had an impact of about 2% on the inventory cost, which is due to basically expiry in the different markets. Okay. We have the raw material petrochemical price increase due to global inflation that is about 1%, and U.S. price reduction is about 1%. Total about 4% impact is there compared to what we have indicated earlier, 25%-26%, you know, indication which was given earlier. I think there is an increase of about 4%. Out of that, the one-time inventory write-off is 2%, so that will not be there. Other two which are there, out of that, as I mentioned, we should be able to recover about 1% from the price increase which we have taken, where we will get the full impact during the year. That's all. Yeah. Also the dollar effect. Got you. Just as a clarification, you are getting 26% to be the EBITDA margin to look for FY 2023, two years? Yeah, you can say so. I think 26, 27, that is the range. Yes. Okay. Got you. Thank you. Thank you. Anyone who would like to ask a question, you may press star and one. The next question is from the line of Harsh Beria, a Professional Investor. Please go ahead. Harsh Beria, your line has been unmuted. Please go ahead with the question. We would request you to unmute yourself from the handset and proceed with the question. Seeing no response, we'll move to the next question, which is from the line of Vinod Pathikaram from InCred Capital. Please go ahead. Hi. Just a question on the U.S. business. The price erosion, how are you looking at it? Say the last quarter versus the quarter before that and what is the latest? That is, what are you seeing right now versus what you saw in last quarter? How is it progressing? I think the price erosion happened in the earlier quarter, and thereafter it has stabilized. We have not seen price disruptions in the current quarter. Whatever price erosion has occurred in the previous quarter, that effect will continue, and which is what Yogesh Agrawal has mentioned, I mean, that 1% impact we are saving in the costs, which has got elevated. For now, the price erosions have kind of tapered down significantly. They have quietened. We are estimating that probably the price erosion should come back to the level of 5%-8%, which was a normal range also for the price deflation which would happen. Got it. Just another question on the U.S. market. You have this product filing, generic version of Chantix. You know, any update on when do you expect the approval for the product and launch? Unfortunately, no, I don't have a date I can share with you. We are still working with FDA to seek the approval for that product. There are some technicalities which are involved. Let us see. I mean, we are at it. We believe that it's a good, decent opportunity. Still, I don't have a date which I can share with you that how close we are for the approval of that. Okay, great. I'll join back with you. Thank you. Thank you. Thank you. The next question is from the line of Nimish Mehta from Research Delta Advisors. Please go ahead. Yeah, thanks for taking my question. Yeah. Aside from Chantix- Sorry to interrupt you, Nimish. Sorry to interrupt you. May I request you to come on the handset mode? I think you are on speaker and the audio is not very clear. Okay, just one minute. Thank you. Is it better now? Yes, it is. Please Please go ahead. Yeah. My question is actually related to another U.S. product filing, Revlimid, which is macrocyclines for smoldering multiple myeloma. Any idea, you know, again, when can you launch? Because I understand this could also be a decent launch. If I'm not wrong, you can launch upon approval. Any idea about the timeline would be helpful, yeah. Yeah, for that, I can share with you. The feedback we have from the FDA is that the ANDA review is complete for that. We are just waiting for the facility inspection. They have said that the approval can happen after the facility. Now we are waiting for the U.S. FDA to announce when the inspection will happen. I see. It can well be in the year as well, the launch probably. We hope so. We hope so. I think it's just linked with the FDA. Now we have seen number of pre-approval inspections happening in the industry. You must have also seen number of companies are getting the inspection. We have written a few times to FDA saying that we are awaiting and we are ready for the inspection. As we have started with other companies, I'm sure we must be somewhere on the roster there. Hopefully sooner than later they are now. It's primarily just waiting for the inspection now. Once the inspection is through, we are hopeful that we should be able to secure the approval for this product then. Understood. Lastly, if I may, on Trokendi XR, which is Topiramate, I understand the FPF will be launching in January next year. Are we likely to launch Sulindac as an off-patent exclusivity? We have a tentative approval on that. I don't have it top of mind, the launch date on that. I think, maybe our team can circle back on that. Okay. Do you think it is an interesting opportunity? Yeah, of course. Of Of course, I think it's still a good product to have. I mean, at least, we are glad to have the TA for that, because otherwise some other products, they got linked with the facility inspection. Right. Which is why the question came up. I just don't have a date on when we have the date of launch, but we are very close to launching it. The case is still ongoing, right? It is still not settled, if I'm not wrong. I'm really not, I don't have the answer at the tip of my tongue to give you on that. The fact is that we have got a TA, so there's no holding back. It's I think the date when the exclusivity or the patent expiry will happen, we'll seek the approval and probably will be able to get the product. Having said that, I think let me just reconfirm with my team, and then they'll circle back to you on the details of that. Okay. Overall, with these kind of opportunities, can we say that the U.S. generic business can see, you know, significant growth in next two years or so? Because these are all important and low competition opportunities. Yeah. That has been the outlook. Traditionally also our product for current product portfolio, if you see, we've been selective in identifying the products which are complex, have some of the barriers, maybe the bioequivalent barriers, whatever it could be. We have some good products. Unfortunately, the approvals got lost. Now, hopefully the inspection starts. Yeah, we have some good products which we have already filed, and there are some good products which are at the advanced stage of filing during the current year also. They all can bring good value to the company. Okay. Understood. Thanks so much. Thank you. The next question is from the line of Abdulkader Puranwala from Elara Capital. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. Would it be possible to break the India growth into volume, price, and new launches? that is, we have taken. We have taken the possible price increase. I will share the breakup with you. Price increase we have taken is about 7%. That is the contribution to the growth. Yeah. 7% is the contribution to the growth there. Out of the total growth, 7% is price increase. Okay. 6% is the volume growth. Rest of it is the 3% is new product launch. Okay. For next year and FY 2023, so what are we targeting in terms of new launches? Which are the therapies where these products would be launched or the brands will be launched? For the rest of the coming year? Yes, sir. Mainly anti-diabetic and cardiology. That's where the plethora of launches are taking place across the industry because there are multiple new product opportunities, including fixed dose combinations. We are also in the race to launch those products. Mostly it will be tilted towards that, those two segments. Sure. Sir, my final question on the U.S. business. When you mentioned about, you know, Advate and couple of other products, the U.S. is for price erosion. If you could provide some color on how the margin profile would look like and, you know, the kind of growth visibility you would have into this business. Members of the management, we can now hear you. Yeah. Yes, we can hear you now. Yeah. What was the question on the U.S.? My question was basically, if you have to look at the current juncture, how would the EBITDA margins on the US front look as compared to what they were at two to three years ago? If you could also provide some color on growth on the US front for 2023 and 2024, keeping in mind couple of new product launches would also be on the line for the same offering. Yeah. We don't give out the region-wise EBITDA margins there. Naturally, you can very well assume because of the severe price erosion, which last year was between 15%-18%, it has adversely impacted the EBITDA margin of the U.S. business. That is one part. Second for the going forward, currently we have some good products which are awaiting approval only for the FDA inspection. Two of them we already discussed earlier on the call. There are some more products which we have filed. Now, it's difficult to predict, but if we get the inspection approval, we could be launching some products in Q3. If that inspection gets delayed by a quarter or so, it could be in Q4. On the current business, current product, we are looking at the flattish kind of growth for the current year. Even if the growth is there, it could be in the low single digit, maybe 5%-6% without the new products. As and when the new products will come, it will add to the growth as well as to the EBITDA margin. Sure, sir. Understood. I'll get back into the queue. Thanks for answering. Yeah, sure. Thank you. The next question is from the line of Ashwin Panchsheti from Bella Capital. Please go ahead. Yeah. Thanks for the opportunity. Just a follow-up on U.S. business. You know, what are the, you know, this quarter we have not launched any product, but any planned oral product or any number of launches that we have planned for next nine months in FY 2023? No. As I said, I think, currently whatever actually was approved for advanced stage of review, they are all awaiting inspection. We have four products. FDA has told that the review is complete. They are awaiting their approval. Right now we don't have any visibility. As I guided you, I think, we are waiting for the inspection to happen to unlock the new product approvals. Without that, we are expecting close to 4%-5%, probably 5% growth in that proximity. As and when the new products get launched, then that will add to the growth number and the profitability. Okay. On basically India business, what is the guidance now, you know, for FY 20 23 and for FY 2025? I mean, you know, earlier we used to say that, you know, we would be doing around 12%-15% sort of growth in India, but considering that this quarter was pretty high growth, what is your guidance on that part? We continue with the original guidance that we have given, which is the mid-teens for the India business. Even though quarter one is exceptional growth that you see, high double digit growth. Let's not forget that Q1 last year the base was quite low because of the second wave and deadly wave of Delta. Some part of this growth is going to come off as we go along in quarter two, quarter three, which were quite robust last year also. At this point, we would rather be little bit more careful in giving our forecast. We are expecting mid-teens. Similar is for Asia and Africa branded business also, right? Yes. You are right. Okay. Coming to the EBITDA margin, as you said, that, you know, the raw material cost, you know, whatever, 300 basis points more, which we have seen in this, first quarter, at least 100 to 150 basis points is something which can come off in the subsequent quarters. Considering that, you know, quarter one was a low, EBITDA margin quarter, you still expect, you know, in, FY 2023, we would do around 25%-26% after assuming that quarter four is normally a very soft quarter for the company? You are right. I think quarter four is always soft, and I think we should be able to to EBITDA at that level. Basically you're saying that the EBITDA margin would be in the range of 25%-26% for this entire year? Should be in that range, yes. 1% varying there is okay, but then that should be the range. Okay. What about FY 2024? Are we expecting any normalization, next year? Too far away to discuss. We are right now focused on the current year. We are investing, seeing the unprecedented times. If the inflation cool down, as we also said in the opening, the freight costs that was being impacted, foreign growth in the quarter. I think if all those comes down, then naturally it will get added to the EBITDA and the PAT. Mainly focus on cost efficiency, anything which can lead to at least 100-150 basis point improvement in FY 2024. That is what I wanted to understand. That is always the, you know, focus, and that is what we always try to do. The only thing is there are certain external factors which are beyond our control, like the freight costs or the inflation, et cetera. That is where we don't have a control. Otherwise, whatever is in our control, I think we are 100% sure that we would like to, you know, ensure that the, you know, savings are brought to the business. Okay. Okay, sir. Thanks. That's just from my side. There was a question. There was a call on the topic on the Topiramate also. Just wanted to highlight. The matter is still under litigation, and we don't have visibility on the launch of Topiramate. I just wanted to share that across with all on the call. Okay, sir. That's it from my side. Yeah. Thank you. Thank you. The next question is from the line of Ayush Mittal from Mittal Analytics. Please go ahead. Good afternoon, sir. First of all, congratulations on a very good performance. Sir, I missed the trade generic number. I'm not sure if that was shared in the call today. Can you please share that number for the quarter? Quarter is INR 33 crore against last year, previous year, the same quarter is INR 27 crore. Okay. Sir, can you talk a bit more about this segment? What exactly are we doing in this trade generic and what has been driving the growth and what is the strategy going forward? In trade generic we are doing pretty much exactly the same as what some of the other companies are doing. These are all. It's a push strategy that is used where is being sold by the pharmacies. The differentiator is we are focusing more on the chronic segment in the trade generic. We have been able to grow pretty well in the last three years. We hope to continue the growth in the coming two or three quarters also. Okay. These products are in-house manufactured or are these outsourced? It's a mix of both. Okay. Thank you. That's all my time. Okay. Thank you. Thank you. The next question is from the line of Sonal Randeria from Edelweiss. Please Please go ahead. Good evening, and thanks for giving me this opportunity. You know, on the Asia and Africa branded business, is there an element of channel filling here so that, you know, there might be some lumpiness in revenue in the coming quarters? Element of what? Channel filling, stocking and inventory at the dealer level. No, not really. Not really. Okay. There is high data. There is many quarter also we are guiding towards our mid-teen growth, so. Sonal, I think what you are really trying to understand is that this higher growth is something which may be because of the channel filling, but it is not so. Actually, the earlier quarter, last quarter, as we mentioned earlier also, that it was the Delta variant quarter where everything came to standstill. Because of that, we are very low. If you see our four quarters, that was the lowest quarter which was there. You know, afterwards we picked up the numbers in the market. I think it is absolutely normal. Got it, sir. That's helpful. I think, Arvindji, you also mentioned that, you know, you expect the price erosion to sort of, you know, revert back to historical levels. It's very similar to what Teva also said in their call. I'm just wondering, what is it that, you know, is changing on the ground? You know, have the pharma companies said enough is enough, now we can't sell below a certain point? What is changing on the ground? What is changing is, I think, the fact that, during the COVID, when approvals were not coming, companies were under pressure to increase the business. I think they were overstepping in, trying to get the market share, of each other competitors very aggressively, which is what we saw leading to the price erosion. I think industry has understood that this is not helping. In fact, it is hurting all the companies. I think that kind of awareness and sense has prevailed. We see that undue hyper competitive activity is kind of normalized. Now hopefully with that, the assumption is that it should come back to the historical level price erosion. Hopefully now the new product approvals also are started to, we see the PMCF approval inspections coming for the number of companies. That also new approvals will start to come in. The pressure to increase the business of the existing products will also kind of reduce a little more. Okay. Fair enough. Just one more, if I can squeeze in before Arvindji. Arvindji, you know, I, from the annual report I saw that your freight cost has gone up around 30% annually in the last couple of years. So any other line items you would like to point out, maybe, you know, some of them which may not be in your control that have been sort of leading to higher Opex? I think, apart from freight, there is no other element which is there. Normal inflation is definitely there in the cost, but not too much. Mainly it is the conscious decision which we are taking in terms of enhancing our allocation to the branded generic business. That may increase. Otherwise, I think it is absolutely normal. Got it, sir. Thank you, and all the best. Thank you. Thank you. Anyone who would like to ask a question, you may press star and one. The next question is from the line of Richa Agarwal from Value Research. Please go ahead. Hi, sir. Thank you for taking my question. My first question is on what is the cash utilization avenues or deployment that you think about going ahead? See, it's very simple, you know, because I think this is the thing which is going on for the last two to three years. We are looking for acquisitions. We are scouting for acquisitions. We are always looking at all the opportunities which are coming in the market. Certainly that is one area where we can deploy this cash. Other than that, I think, you know, our major Capex is already completed. There is no need there, and there is no other major utilization of cash which is going to be there in the near future. Right. Acquisition in the domestic front is what we are scouting for? Yeah. Basically, it is only in the domestic market, the India market we are looking at the brands. Right. Okay. Just to confirm, you have mentioned you are seeing branded markets, Asia and Africa growth to be around 15%, for the next few years. Mid-teens we are saying. Mid-teens. Yeah. Okay. Sure, sure. Okay, sir, that's it from me. Thank you. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question at this time. The next question is from the line of Tushar Manudhane from Motilal Oswal. Please go ahead. Okay, thanks for the opportunity again. Now on the domestic formulation side, the increasing prices on the animal portfolio, will that get reflected Q2 onwards, or there is some inventory still left in the system? No, I think it has started to reflect in Q1 itself, and I remember we discussed this. I think a couple of quarters ago, and I had mentioned that we will take the full degree. We have done the same and it has started to reflect by the end of Q1 itself. Of course, you will see more reflection going forward. There has been also talk about some, again, price cap, price ceiling in the independent chain, some media news flow. Any comment on that? I am only aware of it as much as you have information on it. It's it. It's only a media report that I have also read. Don't understand. This one last clarification, while you have already explained it, but just so the margins which you are guiding for doesn't include the opportunities like Chantix or Revlimid? No, no, they are included in those four points. Any query pending for Chantix which, you know, we are working on and accordingly the product approval will come? Yeah. As I said, we are still in dialogue with the FDA on the requirements they have given us, which we are furnishing them. It is work in progress. Okay, sir. Any timing you would like to give in terms of you responding to U.S. company? No, unfortunately I don't have. Maybe not a quarter or two, I think, that is what I have visibility. After that, how quickly it can come through, let's wait and see. Thank you, sir, and all the best. Sure. Thank you. Thank you. Anyone who would like to ask a question, you may press star and one. Ladies and gentlemen, you may press star and one to ask a question at this time. A reminder to all the participants, you may press star and one to ask a question. The next question is from the line of Gaurav Hireja from ASK Investment Managers. Please go ahead. Yeah, good evening, sir. I hope I'm audible. Absolutely. Yes. Go ahead. Sir, the first question is around the Africa piece. If you could delineate the Africa branded business growth between the Franco Africa and the Anglo Africa segments, and also give us a flavor of, you know, what's the growth in Anglo Africa looking like and what's the salience in sales of Anglo Africa overall? No, unfortunately we are not sharing the data split, Anglo, Franco, but as you are aware that our bigger presence is in the Franco Africa. Both the markets, they are performing well for us, Anglo as well as, Franco. Both are showing positive growth. Okay. Likewise, would it also be possible for you to give us some flavor, if not quantitative, you know, at least directionally of the Asian branded generic markets? You know, Philippines, Iraq, Jordan and the CIS markets separately. You know, some idea of how you see them evolving for you over the coming two to three years. Unfortunately, I think we are giving this guidance on the consolidated basis, but again, I can repeat the same thing. I think all the markets are performing well. It's a blend. It is not that only one market is good. Maybe one may have slightly higher percentage than others, but all the geographies are performing well for us, all the markets. Okay. As I've said in my opening remarks, we are staying very laser sharp focused in all these markets to identify the opportunity to increase the market share, to bring new products, identify the gaps, increase the productivity, increase the manpower. It's a constant battle every day. That is what we are seeing the results. We remain, continue to remain optimistic about posting the higher than the industry growth in all these countries. Is your sales in all of these markets driven by your own sales force, or is it, you know, partially a distributor-led model and partially your own sales force? If you could give some idea about that. That's the good part about our business. All our branded generic business in the exports also, they are all driven by us. We decide the product, we decide the price, we decide the promotion. Distribution just does the cost of distributing the product for a cost. We are able to decide our course of growth. That is where the beauty is. Okay. On tax rate, if you could give us some guidance for this year and next year? I think this year we have given guidance of over 21%, and that is what we should have even in this quarter also. We have reached almost similar percentage. For the next year, I think will be difficult at this point of time, but I think we should see it in this range only, you know, should be around 20%-21%. Just one final question. In the U.S., the FTC is investigating the trade practices of pharmacy benefit managers, and the inspection is fairly comprehensive. Do you foresee this sort of changing the U.S. landscape from a pricing perspective in the years to come, you know, if the outcomes are adverse for pharmacy benefit managers? It's a complex matter. Unfortunately I do not have a view on that. Let us see. It's a big industry shift which we are talking about there. How fast, and those changes are not easy to make, those structural changes which are being talked about. I think it's going to be interesting to see how this evolves and which way it settles if there are any changes happen, significant changes happen. I don't have any view on that to share with you. If in the eventuality that PBM practices are sort of brought more in line with the customer needs because PBMs tend to, you know, keep the discounts that they get from innovator companies for themselves without passing it on, do you see this in any way helping the cause of generic companies in U.S.? I don't know. From generic point of view, I would assume it would be neutral because ultimately we are competing with other generic companies. How the channel keeps the margin is a separate matter. It would probably for a generic company would not have such a huge impact. Maybe for the brand companies there could be some changes which may occur. Yeah. Because some of the litigations, you know, which are ongoing, in this regard also point out that generic medicine access to, certain classes of patients was denied, by the PBMs. I think that's what the whistleblower suit seems to indicate. I was just wondering if there is any significant possibility that, you know, this might help, to bring, generic penetration in a, in a bigger way there. It's a complex subject. I think it's difficult to discuss that on a call, investor call. Okay. Thank you, sir. That's all from myself. Okay. Thank you. The next question is from the line of Alisha Mahawla from Envision Capital. Please go Please go ahead. Alisha Mahawla from Envision Capital. Your line is open. You have the floor. Please go ahead with your question. Hi, am I audible? Yes, you are. Yeah. Hi, good evening. Thank you for taking my question. Firstly, how much percentage of our portfolio is under NLEM? About 12%. 12%. Okay. Sure. Of the India business. Yeah. Yeah. Sure. The step-up in revenue that we've seen in the Africa business, is this sustainable? Like, is this the kind of quarterly run rate that maybe we can currently work with? As I mentioned earlier, we are looking at mid-teen growth going forward. In- This quarter the growth was slightly higher because of the last year corresponding quarter slightly low due to the COVID disruption. We are optimistic to outgrow the industry, that's for sure. Just to clarify, we're talking about the Africa institutional business doing mid-teen kind of? No. I'm talking of Africa, the branded generics business. The institutional business is very unpredictable. That depends on the fund availability, the requirement of the AR products, malaria products in that country. There are a number of factors which are beyond our control. The thing is it's a lumpy business, so it can go very high in one quarter, it can drop the second quarter. For institutional business, we are not giving out any guidances. Understood. Just one last clarification. I believe you were mentioning earlier in the call that there are four products for which we're awaiting U.S. FDA inspection, which could be launched in H2, assuming the inspections are on time. Is that correct? Yes. As As I said, we are waiting for the approval and inspection. Once the inspection happens, whatever time FDA takes to give the approval for the ANDA, we'll be ready to launch the product. These four is including Chantix? Chantix has one more element. Chantix is not linked with the FDA inspection. We are still in the litigation. Okay. The four is excluding. I'm sorry. I'm getting mixed up. Propranolol is mislinked with the inspection. Chantix is still under approval. That is still under the review with FDA. That is not linked with the FDA inspection. Okay. Understood. Yeah. Thank you. Yeah. Thank you. The next question is from the line of Chirag from RatnaTraya Capital. Please go ahead. Hi, good evening, sir. Am I audible? Yes. Yeah. Thank you so much for taking my question, sir. I just have one question on the Africa branded generic business. You know, this is sort of a more generic question. Given that, you know, as an investor our understanding of the branded generic space in Africa is limited, could you help us with a little bit more color on what is going on in this business and currently how are you seeing traction? I'm asking this question more from the point of view of where generally we have been guiding towards mid-teens sort of growth. If you look like even at a 10-year history, growth seems to have happened in a more lumpy manner, even in the branded generics space. You know, 2013 was a great year, 2015 was a great year, and so on and so forth. Could you just help us understand, is it sort of field force deployment that becomes a little lumpy or is it related to some other sort of a little bit of a cyclical factor? What is it that drives that business? Can you just talk about it for a little bit more? That's all I wanted to ask. Thank you. No, if you see our Africa business or for that matter, any branded generic business, whether it was Asia or Africa, it has been very consistent. You see our track record of last five years, eight years, 10 years. The growth percentages may have varied. Maybe some years we may have grown at 8%, some may 18%, some at 25%. But there has been a consistent growth. It has been never lumpy for us that we de-grew 10% and next year 25%. It has been a very. That is the outcome of very, very fundamental things. We believe in identifying the product, identifying the gap, good product selection. If you see our investor presentation also, we are talking about a smart and beautiful product portfolio. That is where it begins. Then after that, bringing the product to life, promoting it well, taking it to doctor, to our own field, is what gives us the sustainability and the scalability both. It's a consistent effort of continuously adding more products every year, working for the product for next year and next year and thereafter years. There's a lot of work in progress. Even in the countries, we have a lot of products under approval across our markets. As and when we get the approval in coming years will be coming to the market. It's a combination of a lot of things, very similar to what we do in India. Increase the market share from the existing brands, add more products, add more people. Yeah, I think that's the fundamental of any branded generic business, whether it is India, Africa or Asia. Any other question, Nida? Thank you. That was all from my side. Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Yogesh Agrawal for closing comments. Yeah. Thank you everyone for joining this call. In case there are any further questions that remain unanswered today, please reach out to our investor relations team. Thank you so much. Thank you everyone. Thank you. Thank you. On behalf of Ajanta Pharma, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.